Cool Dood said:
Or are you all taken care of from 35 to the grave by your friendly government?
Or perhaps the whole idea of a big retirement is a more North American concept?
No cradle to grave provisions in Canada, but there are safety nets to provide for a miminal existence.
From a broad perspective, there is not that much difference between US and Canada on retirement savings programs. Canadians have fewer options but the rules seem to be considerably simpler.
1. Many Americans have company pension plans as do Canadians (defined benefit or defined contribution). The trend is to decreasing levels of support by your friendly employer.
2. Americans have Social Security while Canadians have CPP (Canada Pension Plan - which by the way is self-funding during income earning years).
3. Americans have Roths and IRA's and heaven knows what else with complicated rules, while Canadians have RRSPs (Registered Retirement Savings Plans) in which they can contribute 18% of earned income each year (subject to a ceiling).
4. Canadians have additional safety nets called Old Age Security (OAS) which kicks in at 65 (available to everyone) and a means tested Guaranteed Income Supplement (GIS) which also kicks in at 65. Very few Canadians qualify for GIS. Combined OAS and GIS is meant to provide poverty line existence that no one would want to live at. Thus incentives to save and build retirement nest eggs are alive and well.
The most significant difference is in health care. Much of the discussion on this board is either directly or indirectly related to
individual health care in terms of accessibility, affordability, forecastablity for budgeting, etc. Basic health care in Canada is funded out of government general tax revenues and
individuals can top certains aspects of that up with private plans, e.g. Blue Cross, that don't chew up a large part of a Canadian's budget. Increasing health care costs are a major topic of discussion in Canada and how the 'system' will be able to continue to pay for it.
